Hello fellow HIVErs and LEOfinancers, I hope you've been enjoying the wild fluctuations of fiat and cryptocurrencies as of late.
The "transitory" hyperinflation of fiat currencies that the authorities warned us about seems to be just around the corner. Officially at 8.5% in the United States, but if you talk to people on the ground, the rate of inflation is much higher.
What did we expect would happen when governments worldwide printed trillions of dollars to bailout not only corporations, but this time individuals too. A locked-down global economy with fewer goods and services being chased by a greater volume of money would inevitably lead to inflation.
While inflation may be bad in the United States, take a look at the yen in Japan, as it continues to rapidly collapse against the doller. Friends in Japan are saying the price of food, gas, train tickets, etc are rising quickly while their salaries remain stagnant.
https://twitter.com/jameslavish/status/1519871424608886784?s=20&t=xPM0hj-aH3w4TtD9VrWP0A
- jameslavish
The rate of inflation continues to increase in other counties like Argentina as well, where the Bitcoin payments app Strike is continuing to gain widespread adoption. Countries, states and municipalities are seeing the writing on the wall at this point and starting to take action. Recently the Central African Republic was the second nation to adopt Bitcoin as legal tender, and Panama also recognized cryptocurrencies as a legitimate form of payment.
How do we protect ourselves from the impending hyperinflation? By holding a well-diversified crypto portfolio of course.
Funny thing is there are Bitcoin maximalists on Twitter who are proposing that El Salvador ban all "shitcoins" including Solana, Ethereum, Cardano, and Avalanche. These supposedly freedom-loving people are actually suggesting that we use the power of the state to prevent businesses from accepting any cryptocurrency other than Bitcoin.
What the maximalists don't realize that they are actually offering free publicity and advertising to these alternative platforms. Similar to how Peter Schiff began to bash Bitcoin in every one of his podcasts, the maximalists calling out these altcoins are only drawing more attention and interest to them. The best course of action for a maximalist would be to ignore the altcoins and just let the supposedly superior Bitcoin overtake them in a free market.
However, if you take a gander at the Bitcoin dominance chart, that's clearly not happening. Over the past ten years the overall Bitcoin market dominance has been in decline as innovations such as smart contracts, DeFi, and NFTs continue to pique the interest of investors and gamers.
The crypto space is littered with scams indeed, but there are dozens of nascent layer 1 blockchains with solid teams and communities that will continue to grow in the coming years. All it takes is a little bit of research to distinguish the scams from the legitimate projects.
In the end you want to make sure you have a well-diversified portfolio to defend yourself from the impending hyperinflation of fiat currencies, with Bitcoin and Ethereum only making up a small portion of it.
▶️ 3Speak